COBRA Subsidies Under American Rescue Plan Act

On March 11, 2021, President Joe Biden signed the $1.9 trillion American Rescue Plan Act (ARPA) into law. Among its many provisions, the new law provides for 100 percent premium subsidies for health insurance continuation under the Consolidated Omnibus Budget Reconciliation Act (COBRA) for “assistance eligible individuals” who elect COBRA continuation coverage between April 1, 2021 and September 30, 2021. Employers must cover the initial cost of continuing group health care coverage for eligible individual, for which they will receive a payroll tax credit.  ARPA also adds several new COBRA notice requirements employers must be aware of.  

Read about 2021 legislation.

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